EU on the Verge of Passing Streaming Quota Laws

The EU hasn’t been shy about sticking its nose into our online affairs recently and now it has streaming services like Netflix and Amazon Prime in its sights. Speaking to Variety, Roberto Viola, head of the European Commission department that regulates communications networks, content and technology revealed that plans are in place to introduce a law requiring such services to meet a quota of 30% local content in their on-demand catalogues. “We just need the final vote, but it’s a mere formality,” he stated. All going to plan, these new regulations should come into effect by the end of the year.

The new law, should it be introduced, would require online streaming services to ensure that the requisite amount of consideration is shown to local, European content. This 30% quota might be reached in a number of ways. Firstly, and most obvious would be the purchase or production of EU based TV and feature film content. Secondly, the law would recommend that such services might make donations to “national film funds through a small surcharge added to their subscription fee.” This latter option is already in place in Germany though Netflix did unsuccessfully challenge its introduction.

According to Viola, each of the 28 EU nations will be free to choose how they implement the law even going so far as to “choose to raise the quota from the 30% minimum to 40%,” so it’s too early to say how its introduction will affect the Irish consumer just yet. Similar regulations are under consideration for services like YouTube with the EU looking to increase copyright fees paid to film and TV directors and writers.

“It’s a paradox that, in the digital world, the platforms are getting the largest shares of the revenue stream and those who create the content and drive traffic get the smaller share. There is what we call a value gap there which the Internet world has created. … Artists and creatives must be able to renegotiate their contracts,” Viola said.